The Michigan Department of Insurance and Financial Services liquidated Health One Credit Union of Detroit and named the National Credit Union Administration as liquidating agent.
New England Federal Credit Union of Williston, Vermont, immediately assumed Health One Credit Union’s members, assets, shares and selected loans.
The Department of Insurance and Financial Services placed Health One Credit Union into conservatorship on May 16, 2014, and appointed NCUA as receiver. The Department made the decision to liquidate Health One Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations.
Health One Credit Union was critically undercapitalized with a net worth ratio of 1.39 percent as of the end of the third quarter. The credit union was reporting that 10.47 percent of its loans were 60 days or more past due, according to its most recent call report. In addition, the credit union posted a loss of $651,309 through the first three quarters of 2014 after posting a loss of over $1.3 million for all of 2013.
Health One Credit Union is the eleventh federally insured credit union liquidation in 2014 and the second Michigan credit union to fail this year. Metropolitan Church of God Credit Union was closed on December 3, 2014.
Read the press release.
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